For more information contact: Nick Halter 651-297-1934
Last Wednesday the Minnesota Supreme Court checked Governor Pawlenty’s power. In a landmark case, the court ruled that the Governor’s unallotment of a nutrition program was illegal. In order for unallotment to happen, the Legislature and Governor must sign off on a budget. You may remember that our Governor vetoed the Legislature’s balanced budget last year.
This was a victory for Minnesotans. It affirmed the role of the Legislature (the peoples’ chambers) in the budgeting process. Over the past year the Governor has jet-setted around the country telling people he did what the Legislature couldn’t-balance the budget. But he did so by using unallotment in a way that ran roughshod over our Constitution. I thought this ruling would be a humbling experience for him. Unfortunately, he has decided to ignore us once again.
Not only did that ruling refute our Governor, it also brought our deficit to $3 billion. In challenging times like these, Legislators are called on to be statesman. We knew that with a week to go the added strain on our deficit was serious. It was expected that the Governor would come to the table, after all, without a balanced budget he can’t unallot anymore.
It was time for the Legislature and the Governor to negotiate. Minnesota has a long history of compromise when it comes to our budget. Just look at tax increases passed with Republican Governors like Arne Carlson. Minnesotans expect their elected leaders to do the hard work that serves their best interest.
So we presented a workable plan to the Governor. It approved over 85% of the Governor’s cuts. The other 15% came from an increase on 4th tier income taxes. Before everyone raises their pitchforks and howls at a DFL led tax hike please consider a few things. The largest portion of our proposal is budget cuts. We are reducing government programs by over $680 million.
If our plan passed, joint filers earning over $200,000 would pay a tax rate of 9.15 percent. Single filers earning over $113,000 would also see an increase. Out of 2.1 million filers this provision would only affect 122,000. This tax increase would ensure that we don’t balance the budget on the backs of regular Minnesotans. The billions of cuts we’ve made so far don’t affect the country club crowd; they affect the family who’s struggling to get by.
According to the Minnesota Department of Revenue, our residents who earn over $400,000 pay the lowest tax rate. The past decade we have approved tax break after tax break for the rich, while the middle-class suffered. Did these breaks lead to a trickle-down effect? No, all it did was let the wealthiest line their pockets while the state faced deeper deficits. Those deficits led local communities to strip public safety services and school programs to disappear.
This would have raised $433 million in revenue. The money would have bridged the budget gap and protected our schools, our grandparents, and increased the safety of our communities. After the plan passed the House the word came from the Governor-veto.
It’s true. Our Governor has learned nothing from the Supreme Court deeming his actions illegal. He continues to act more like a king than a statesman. It’s his belief that the Legislature should ratify 100 percent of his cuts and get nothing in return. I’m disappointed that the Governor made the decision to ignore what is best for Minnesotans.
Over the next few days it is my hope he comes to the table. I would appreciate if he recognized the role the Legislature plays in balancing the budget. It is the duty of the House to be sure that Minnesotans are protected in this budget. I can only hope the Governor realizes this.